Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of $$140,000.$ John Shell, president of the company, has set a maximum payback period of $4$ years.

The cash inflows associated with each project are shown in the following table: $.$

a$.$ Determine the payback period of each project.

b$.$ Which project is acceptable based on payback period?

a$.$ The payback period of project $A$ is years. $($Round to two decimal places.$)$

The payback period of project $B$ is years. $($Round to two decimal places.$)$

b$.$ Which project is acceptable based on payback period? $($Select the best answer below.$)$

Project $B$ would be preferred over project A because the larger cash flows are in the early years of the project.

Project A would be preferred over project $B$ because the larger cash flows are in the later years of the project.

Data table

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$

$\backslash$table$[[,$Cash inflows $(C{F}_t)$